Serba Dinamik Annual Report 2018

234 ANNUAL REPORT 2018 SERBA DINAMIK HOLDINGS BERHAD 14. Capital and reserves (continued) 14.3 Other reserves Group 2018 2017 Note RM’000 RM’000 Foreign currency translation reserve 14.3.1 23,159 19,265 Statutory reserve 14.3.2 275 275 Capital redemption reserve 14.3.3 36,000 36,000 Capital gain on equity conversion 8,994 8,994 __________ __________ 68,428 64,534 ========= ========= 14.3.1 Foreign currency translation reserve The translation reserve comprises all foreign currency differences arising from the translation of the financial statements of foreign operations. 14.3.2 Statutory reserve In accordance with the provisions of the Bahrain Commercial Companies Law, Decree Number 21 of 2012 in an indirect subsidiary’s Memorandum and Articles of Association, an amount equivalent to 10% of the indirect subsidiary’s net profit before appropriation is required to be transferred to a non-distributable reserve account until such time as a minimum of 50% of the share capital is set aside. 14.3.3 Capital redemption reserve Capital redemption reserve was in relation to redeemable preference shares redeemed by subsidiaries, for which amount equivalents to the nominal value of such shares were transferred from retained earnings. N O T E S T O T H E F I N A N C I A L S TAT E M E N T